American Apparel Founder Goes From Riches To Rags

Dov Charney claims he has no more than $100,000 in his bank account.

Dov Charney

Dov Charney, the embattled ex-CEO of American Apparel, claims he is almost broke and reduced to living on a friend’s couch.

He was accused of sexual harassment and fired as CEO in June, but stayed on as a consultant. However, he was officially terminated from that role as well amid investigations.

Imagine the CEO of a company valued at between $226 million and $243 million, earning a whopping $800,000 till a year ago, being reduced to living on a friend’s couch.

If you are wondering where all his millions went, they are not in his control.

His dilemma goes something like this: He owns 43 percent stock in American Apparel, but the hedge fund Standard General controls his stake. Charney says he took a loan from hedge fund Standard General to boost his shares on the understanding that the investment firm would help him get back into the company.

Now he feels betrayed and let down.

Dov Charney

He shouldn’t, actually. Things haven’t been going all too great for him what with the sexual harassment allegations, and the brand itself facing fire for its racy campaigns featuring young girls.

With all that is being leveled against Charney, this is almost like karma giving the devil back his due.

Read More: American Apparel Hits The Lowest Of Lows With Its Disgusting Mini Skirt Ad

But his penniless days may not last as he is suing everyone he thinks responsible for his predicament.

Meanwhile, Paula Schneider, a fashion veteran and top executive, is poised to take over as CEO of American Apparel on January 5, 2015.

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